Since it launched the “Land Bank” project in October 2024 Ukraine has leased 20,521 hectares of state-owned land to farmers to a total value of Hr.584.9 million ($14.2 million), according to the Ukrainian Ministry of Economy.
The “Land Bank” project allows Ukrainian farmers to lease agricultural plots from state-owned agricultural companies through online auctions held on the digital public sales platform “Prozorro.Sale.”
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On average, seven participants competed for each auction lot, which increased by eight times the overall predicted sublease value of the land, the press release says citing Ukraine’s First Deputy Prime Minister Yulia Svyrydenko.
“This is an example of a new quality of state asset management, where land works for the economy and creates opportunities for the agricultural business across the country,” Svyrydenko said.
69.1% of the successful bidders in the “Land Bank” auctions are small and medium-sized agribusinesses. Among the subtenants, some have signed more than 20 sublease agreements and have already started cultivating the land, according to Yaroslav Yaroslavskyi, CEO of LLC “State Land Bank.”
Since Oct. 1, 2024, the “Prozorro.Sale” system has conducted 506 online auctions for the sublease of state-owned agricultural land, covering a total area of 35,235 hectares in 17 regions of Ukraine.
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The competition that had the highest number of bidders was in the Vinnytsia region, with an average of 22 bidders for each lot, followed by the Poltava and Cherkasy regions that had an average of 14 bidders.
Among signed agreements, the highest average price per hectare was in the Ivano-Frankivsk region at Hr.47,500 ($1150) per hectare, while the lowest was in Zakarpattia region at Hr.3,496 ($85).
“In just the first six months of operation, the “Land Bank” has become the leader in attracting funds among all land auction organizers on “Prozorro.Sale” since autumn 2021,” the auction site CEO Serhii But said.
As of April 3, 394 land plots totaling nearly 12,000 hectares are still available for sublease in the “Prozorro.Sale” system.
Among the currently available plots is the largest lot from the first batch of the “Land Bank,” a 3,969-hectare plot in Kirovohrad region with a starting price of Hr13.7 million ($331,850).
The smallest plot, covering 0.03 hectares, is in Zakarpattia.